How long can a mortgage company hold onto an insurance refund?

My husband and I included out mobile home in bankruptcy 3 years ago. We continued to live in the home in a rent type situation until 2 months ago. We moved from the mobile home into a new home. Our homeowners insurance was escrowed each month. Our homeowners policy was renewed 3 months ago and I canceled it when we moved. Since the insurance funds were escrowed the insurance company sent the refund back to mortgage company who we legally owe nothing to. I’ve been in contact with the mortgage company since that time trying to get our money refunded back to us so far without out success. I’m always told it is in the system for processing but no one can tell me when I will receive the refund.

Asked on December 15, 2011 under Real Estate Law, Virginia

Answers:

Michael D. Siegel / Siegel & Siegel, P.C.

Answered 8 years ago | Contributor

They cannot hold it.  Something is not right.  Contact the attorney general or state banking department for assistance.


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